The car scrappage scheme is to be reopened for the scappage of a further 3,000 old cars, Finance Minister Tonio Fenech announced in the Budget tonight.

As in the scheme announced last year, those who scrap their old car and buy a new one with low emissions will be entitled to  a subsidy of up to €2,000.

The minister also announced that in order to discourage the importation of old second hand cars, the government will increase the registration tax on Euro I to Euro III vehicles.

The government will also announce a scheme to settle arrears in vehicle licence fees and a reclassification of the tax scheme on vehicles in order to comply with the Euro Standard.

At the same time, Mr Fenech said, there will be higher registration fees on the importation of old cars of between Euro 1-III.

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